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Purchase Price. (1) Effective October 1

Effective October 1, 1991, the sale at retail or use of employment service services undergoes tax. (1) An employe reporting to work at a place in this Commonwealth undergoes tax. (2) An employe reporting to work at a location outside of this Commonwealth is not subject to tax, unless the employe is appointed to operate in this Commonwealth. (3) If the employe is situated in this Commonwealth, it is presumed that the work company service undergoes tax unless documentation supports the reporting to a location outside of this Commonwealth. (c) Examples of taxable services. The following are examples of taxable work company services: (1) A Pennsylvania resident contacts a Pennsylvania supplier and is placed with a company at a place in this Commonwealth. (2) A Pennsylvania resident contacts an Ohio supplier and is placed with an employer at a place in this . (3) A Pennsylvania employer contacts a vendor outside this Commonwealth and accepts an employe for its place in this Commonwealth. (4) A New York resident contacts a New York vendor and is placed with an employer at a location in this Commonwealth. (5) A Pennsylvania supplier paid on a hourly rate interviews and suggests a possible employe to an employer. (d) Examples of services which are not employment service services. The following are examples of services which are not employment agency services: (1) A Pennsylvania resident contacts a Pennsylvania vendor and is put with an employer at a place outside of this Commonwealth. (2) A Pennsylvania resident contacts a New York vendor and is positioned with a company in New Jersey. (3) A New York resident contacts a Pennsylvania vendor and is positioned with an employer at an area in New york city. (4) A Pennsylvania company contacts a vendor beyond this Commonwealth and accepts an employe for its out-of-State area. (e) Purchase price. (1) Effective October 1, 1991, through December 31, 1991, the purchase cost of employment service services subject to tax is the gross cost. (2) Effective January 1, 1992, the purchase cost of employment agency services based on tax is the service charge if the employe expenses are independently stated; otherwise, the gross charge undergoes tax. (3) If the purchase price is canceled or renegotiated, tax is due on the adjusted purchase price. If a modification to the tax takes place, the vendor is allowed to offset the adjustment versus current tax liabilities. (4) If the purchase rate is paid on an installation basis, the tax is due on the full purchase cost and is payable at the time the buyer accepts the agreement or within thirty days of approval of the agreement. (f) Exclusions. (1) Employment agency services are exempt if bought by qualified charitable companies, volunteer fire business, religious organizations and not-for-profit universities, other than if utilized in an unrelated trade or company. The services are also exempt if purchased by the Federal federal government or its instrumentalities; or the Commonwealth, its instrumentalities or neighborhoods consisting of public school districts. The manufacturing, mining, processing, public utility, farming, dairying, farming, horticulture or floriculture exclusion does not apply. (2) Employment services offered by theatrical employment service or movie casting bureaus. (3) Farm labor. (4) A vendor of employment service services may claim the resale exemption upon its purchase of concrete individual home which is transferred to its buyer or a 3rd party in the efficiency of its employment service services. The supplier might likewise buy work firm services from another service provider which the supplier resells to its client. The vendor might not claim the resale exemption upon its purchase of administrative supplies or the purchase of another taxable service which it may use in the efficiency of its employment service services.
Source

The arrangements of this § 60.5 adopted January 8, 1993, effective January 9, 1993, 23 Pa. B. 182.

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